Manchester City are reportedly closing in on the signing of Gremio teenager Diego Rosa.

The 17-year-old has not made a first-team appearance for Gremio but his performances at youth level and for Brazil's Under-17 side have led to a host of attention.

A number of clubs have been linked with the versatile midfielder, but according to UOL, City are on the verge of securing his signature for an initial £4.5m.

The report, though, claims that the deal could eventually rise to over £20m as there are a number of clauses which could be activated in the coming years.

Rosa will be unable to officially link up with City until he turns 18, and it is understood that he will initially be loaned out, potentially to Belgian side Lommel SK, who are part of the City Football Group.

Pep Guardiola's side are also allegedly interested in signing Napoli's Kalidou Koulibaly this summer.